Joan Walters, f.k.a. Joan Gherman, and Henry Gherman - Page 19

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          name of individual or entity, the amounts that had been either              
          invested in a "phantom CD" or withdrawn from a "phantom CD" and             
          redeposited into the party's account, with dates commencing                 
          December 15, 1982, and ending November 3, 1988.  By year, the CD            
          schedule indicates that Mr. Gherman had embezzled the following             
          net amounts (withdrawals from accounts of FIP's clients less                
          redeposits to accounts of FIP's clients) from FIP's clients as              
          part of the CD scheme:                                                      
          Withdrawals         Redeposits                                              
          from accounts       to accounts             Net                             
          Year     of FIP's clients   of FIP's clients         amount                 
          1982      $1,480,000.00            -0-           $1,480,000.00              
          1983       1,315,000.00        $685,000.00          630,000.00              
          1984       2,663,500.00       1,088,500.00        1,575,000.00              
          1985       1,726,162.52         565,000.00        1,161,162.52              
          1986       2,305,000.00         552,462.52        1,752,537.48              
          1987       3,794,500.00       2,086,000.00        1,708,500.00              
          1988       1,571,000.00          45,700.00        1,525,300.00              
          Total   14,855,162.52       5,022,662.52        9,832,500.00                
          Of the $1,525,300 net amount reflected on the CD schedule for               
          calendar year 1988, a total of $155,300 of the withdrawals and              
          redeposits were made on dates after Mr. Gherman fled the United             
          States.                                                                     
               The CD schedule was introduced in evidence during the 1988             
          bankruptcy proceeding.  Respondent used the CD schedule to                  
          develop the amounts reflected in the notices of deficiency as               
          having been embezzled from FIP's clients on a year-by-year basis.           
          See infra.  The CD schedule was prepared from FIP's books and               
          records and from subpoenaed bank records.                                   




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